State Budget Woes

A new report from the Center on Budget and Policy Priorities highlights the increasingly precarious fiscal situation faced by state governments confronting the ongoing economic downturn. According to CBPP, "at least 44 states faced or are facing shortfalls in their budgets for this and/or next year, and severe fiscal problems are highly likely to continue into the following year as well."

The process of bringing budgets into balance should be the source of much political turmoil over the next year. In Minnesota, which has a predicted two-year deficit of $6 Billion, legislators are beginning to spar over the potential tax increases and budget cuts. On Dec. 26, Gov. Tim Pawlenty announced $271 million in "emergency cuts," with a large share coming from aid payments to local governments. Legally required to have a balanced budget, as are many states, legislative leaders in Minnesota face the prospect of a challenge "so ugly that a special summer session will be needed to finish the budget." In New York, which faces the "largest deficit in state history," Governor David Patterson recently presented an "austerity budget," calling for cuts in state aid to local governments, education funding, and property tax rebate programs. Looking at all potential options to fill the gap, Patterson has also "appointed a commission to look into leasing state assets," including bridges, roads, and parks. The privatization of state assets and infrastructure as a means to raise funds is also being considered in Minnesota and Massachusetts, which faces a FY2009 deficit of over $2 billion.

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I became interested in developing economy economics when I was a student at the University of New Hampshire. I graduated from the University of New Hampshire in 1992 with a BA Degree in Political Science and a minor in Economics. I ran for United States Senate from
New Hampshire in 2002.

The less underground an economy is the more revenues that governments may obtain from sales taxes and income taxes.

Before Amendment Seventeen was adopted, United States Senators were chosen by State Legislatures. This was a check on federal government power.

The following Amendments to the United States Constitution would reduce the amount of harm the federal government causes to the budgets of state governments.

I would like an Amendment to the United States Constitution passed that gives each State at least 3 United States Senators and allows each State Legislature to choose at least 1 United States Senator. United States Senators chosen by State Legislatures may care more about the national debt, unfunded federal government mandates, illegal immigrants, better trade agreements, and better treaties.

I would like an Amendment to the United States Constitution adopted that allows State Legislatures to repeal federal laws, federal regulations, trade agreements, and treaties. This would probably decrease the numbers of unfunded federal government mandates, harmful regulations, harmful trade agreements, harmful treaties, and harmful laws that harm the budgets of state governments.

I would like an Amendment to the United States Constitution passed that allows State Legislatures to recall (fire) their Representatives to the United States House of Representatives, their United States Senators, the President of the United States of America, and the Vice President of the United States of America.

I would like the United States of America and other countries to legalize, regulate, and tax the sale of marijuana, heroin, and cocaine for people who are least 18 years old. If the United States of America and Mexico legalize, regulate, and tax the sale of marijuana, heroin, and cocaine for people who are at least 18 years old, they would probably be able to spend less money fighting violent Mexican drug gangs. If Mexico is able to spend less money fighting violent drug gangs, Mexico may be able to spend a lot more money on its economy. If Mexico's economy grows a lot, fewer illegal immigrants may come to the United States of America, many illegal immigrants may leave the United States of America, and many more Mexicans may buy more products and services from the United States of America. Most non violent drug offenders should be released from prison so that there will be more room for violent criminals. If state governments are able to spend less money fighting violent crime, dealing with illegal immigrants who are a major expense for them, and dealing with non violent drug offenders, they may be able to reduce their sales taxes.

I would like the United States of America and many other countries to legalize prostitution for people who are at least 18 years old to reduce sex slavery and rapes.

I would like many more states to have casino gambling for people who are at least 18 years old. The more people employed by casinos the fewer people who made need food stamps and Medicaid.

I would like many more states to allow smoking in restaurants for people who are at least 18 years old. State governments may obtain more revenues from restaurants and from cigarettes. If restaurants get busier and employ more people, there may be less need for food stamps and Medicaid.

I would like people who are at least 18 years old to be able to buy alcohol legally. I think it is crazy that we tell 18 year old soldiers who have lost an arm fighting for our country that they may not drink legally in a bar or restaurant. A bullet to the brain is a lot more dangerous than a glass of alcohol. A friend of mine was murdered by a drunk driver in 1980 when I was 10 years old. Alcohol did not murder my friend. The drunk driver murdered my friend.

The federal government should sell a lot of the land it owns to raise capital, reduce the national debt, help fund Social Security and Medicare, help fund infrastructure, help fund buses between cities, help fund buses between cities, help fund passenger rail, help fund energy transmission, help fund energy development, and do other things. If you type federal government owned land on a search engine, you might be surprised at how much land the federal government owns. State governments should obtain some of the money the federal government obtains from the sale of the lands. I expect Americans and foreigners to buy some of the lands. Local governments may be better able to obtain property taxes from individuals and businesses.

Congress should consider allowing casinos and hotels especially hotels for the wealthy in many national parks. The federal government could obtain a property tax from these casinos and hotels. The federal government could obtain a percent of sales from these casinos and hotels. State governments should obtain some of the money the federal government obtains from these casinos and hotels.

The lower federal taxes are on individuals and businesses the higher state government taxes may be on individuals and businesses. Sometimes, I think state governments spend money better and provide services better than the federal government.

The federal government should stop taxing interest from savings accounts, dividends, capital gains, and estates. Individuals and businesses will have much more incentive to invest in poor parts of our country. Many individuals and businesses would have more money to spend. Businesses will have an easier time obtaining loans and investments for hiring workers, research and development, and plant and equipment. Middle class people and union members who have mutual funds would benefit from capital gains and dividends not being taxed. If the nation's economy grows a lot, state governments are likely to obtain more money from sales taxes and income taxes. If more people are employed, fewer people may need food stamps and Medicaid. If more people are employed, the social security tax and the medicare tax may take in more money. Savings and investments are how jobs and economic growth take place over time. Are the results immediate? No

Congress may want to pass a 2 percent national sales tax that is placed on most items other than food, shelter, health care, and education. If a national sales tax is adopted, the income tax on individuals and businesses should be reduced. Some of the money taken in from the national sales tax could be used to fund Social Security and Medicare.

The federal government and state governments should increase their gasoline taxes. I would like the federal government to spend more of the money it takes in from the gasoline tax on buses within cities, buses between cities, and passenger rail. If the federal government spends more money on buses within cities and buses between cities, people may have an easier time getting to jobs and from jobs which could reduce the need for food stamps and Medicaid. If fewer families need to have 2nd cars and 3rd cars, they could have more money for non transportation related expenses. If more people use buses, our country may use less foreign oil and the air may be cleaner. I hope the funding for the Manchester Transit Authority which runs bus service in Manchester, New Hampshire will increase. I use Manchester Transit Authority buses.

New Hampshire may want to spend some of the money it obtains from the rooms and meals tax on Manchester Transit Authority buses and other bus service in New Hampshire. This may increase tourism to New Hampshire from Canada and other places. Manchester, New Hampshire would benefit from having evening bus service and Sunday bus service. Manchester, New Hampshire has spent many millions of dollars on the Verizon Wireless Arena and MerchantsAuto.com baseball stadium. It would be nice if Manchester's taxpayers who have helped pay for the Verizon Wireless Arena via the rooms and meals tax are able to take buses to it and from it on Sundays. I hope people are able to take buses to the baseball stadium and from the baseball stadium on Sundays. Manchester Transit Authority buses have plenty of advertising space inside of them. I hope many businesses will advertise inside of Manchester Transit Authority buses. An ad inside of a bus may be seen for a longer period of time than an ad in a magazine.